When it comes to purchasing gold, there are multiple types and options. The two major ones are physical gold and paper gold. Paper gold refers to ETFs, stocks, bonds and IRAs; however the more popular choice for many investors continues to be physical gold. It provides a bigger sense of security in the case of economic collapse, as the holdings are actually in your hands, to be seen and touched, and eventually traded or sold, if need be.
There are many different forms in which physical gold can be bought. Jewelry, especially antique jewelry which tends to be more pure, can hold value, however when it comes to investing, people tend to choose bullion coins and bars, and they remain a much more popular choice. This article will focus on bullion bars, and why they tend to be preferable.
Gold bars are a specific quantity of refined metallic gold, and must be created under certain guidelines and to fit within some standard conditions of manufacture, including labeling and record-keeping. Gold bars are created with two different methods: as cast bars and by being minted. Minted bars are made out of large, flat, blank pieces of gold and hand cut down into certain size requirements. Cast bars, on the other hand, are made by pouring molten gold into ingot molds, which gives the bar its specific "brick-like" shape. In the case of minting or casting, markings are typically always applied to the gold, which includes vital information such as purity and weight. To be considered "real" gold, there must be between 99.5%-99.9% purity.
The standard way to measure gold is in troy ounces, and given conversion, one troy ounce is equal to approximately 31.10 grams. Gold bars are produced with certain and specific weights, which makes them easier to buy, sell and trade, and to keep track of. The kilobar is one standard type of gold bar, as it contains 1000 grams of mass in gold. This bar is used extensively in trading and investing, as it is considered to be quite manageable in size, and when traded, the premium on these bars remains quite low over the actual spot value, making it highly ideal for smaller transfers. Otherwise, the Good Delivery bar (400 troy oz.) is the standard gold bar that is held and traded internationally. They must continually be stored in secured and recognized gold bullion vaults to maintain their status.
Investing in physical gold is a good idea, just be sure to do your research and buy from a reputable dealer when you are ready to make your investment.
There are many different forms in which physical gold can be bought. Jewelry, especially antique jewelry which tends to be more pure, can hold value, however when it comes to investing, people tend to choose bullion coins and bars, and they remain a much more popular choice. This article will focus on bullion bars, and why they tend to be preferable.
Gold bars are a specific quantity of refined metallic gold, and must be created under certain guidelines and to fit within some standard conditions of manufacture, including labeling and record-keeping. Gold bars are created with two different methods: as cast bars and by being minted. Minted bars are made out of large, flat, blank pieces of gold and hand cut down into certain size requirements. Cast bars, on the other hand, are made by pouring molten gold into ingot molds, which gives the bar its specific "brick-like" shape. In the case of minting or casting, markings are typically always applied to the gold, which includes vital information such as purity and weight. To be considered "real" gold, there must be between 99.5%-99.9% purity.
The standard way to measure gold is in troy ounces, and given conversion, one troy ounce is equal to approximately 31.10 grams. Gold bars are produced with certain and specific weights, which makes them easier to buy, sell and trade, and to keep track of. The kilobar is one standard type of gold bar, as it contains 1000 grams of mass in gold. This bar is used extensively in trading and investing, as it is considered to be quite manageable in size, and when traded, the premium on these bars remains quite low over the actual spot value, making it highly ideal for smaller transfers. Otherwise, the Good Delivery bar (400 troy oz.) is the standard gold bar that is held and traded internationally. They must continually be stored in secured and recognized gold bullion vaults to maintain their status.
Investing in physical gold is a good idea, just be sure to do your research and buy from a reputable dealer when you are ready to make your investment.
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